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Nardelli said: “It’s true we would need more engineering resources if we had to do everything ourselves, but we have the luxury of being able to break traditional paradigm, to do things in a different way that doesn’t require as much investment.”

What he means is that Chrysler will buy in models from other manufacturers. That way, in theory, it gets to market faster with the new cars it needs. But its deal with the ambitious Chinese manufacturer Chery to produce a small car in China for America and Europe has been delayed � it is unlikely to arrive before 2011 � and a recent agreement to rebadge the Nissan Versa made in Mexico for South American markets may well extend to America.

Nardelli has been quoted as saying that Chrysler will lose $1.6 billion in 2008, but officially the company makes no announcements on forward projections. “The advantage of being private is that we can be private,” he said.

Analysts worry that while Chrysler may be trimmed, sharpened up and returned to profit, it will do so by using products developed elsewhere and will lose its once-proud reputation for engineering.

LINK:US carmakers still on the wrong road - Times Online
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